According to the Securities Act of 1933 a new issue must have a ________ prepared and delivered prior to or at the time of the sale.

Prospectus

What is the name of the document that provides investors with additional information not found in a mutual fund prospectus?

Statement of Additional Information. (SAI)

The SEC no-approval clause is found where in the prospectus?

Bottom of Front cover

The value upon which all mutual fund purchses and redeptions are based is the _____ ______ value.

Net Asset Value

The price at which the shares are offered to the public is called the _______ ______ price
or the _______ ________ price.

public offering price

retail asking price

When a public investor purchases a mutual fund there is a charge called a _______ charge or a ______ ______.

Sales charge

sales load

The larger the investment the lower the sales charge. This is known as.

Breakpoints

Another way to qualify for the beakpoint is by signing a _____ ___ _______. (LOI)

Letter of Intent

By Signing a _________ ___ _____ an investor is stating his intention to invest an amount equal to or greater than one of the breakpoint levels in the next 13 months.

Letter of Intent

A way of qualifying for a breakpoint that allows an investor to invest over a long period of time to reach a breakpoint. This includes amount invested or current value.

Right of Accumulation

T/F
The investor cannot defer taxes on his distributions from a mutual fund by reinvestinging them into additional shares.

True

Why reinvest dividends and interest back into your mutual fund? Two reasons...

Compounding effect

saving sales charges on new shares

Mutual funds are given special tax treatment if they comply with certain conditions. One of the most important of these conditions is that they distribute at least ___% of their income to shareholders.

90%

What section of the IRS code deals with mutual fund tax treatment?

Subchapter M

the Last part of the prospectus in made up of the.

Finacial statements

A program where an investor enters into a contractual plan where he is required to make periodic payments to benefit from dollar cost averaging is organized as a ______ ________ _______.

The investment Compnay Act 1940 defines the follow person as an ________ person. Anyone directly or indirectly owning, controlling, or holding with power to vote, 5% or more of the outstanding voting securities of a company.

Affiliated Person
-

According to the ICA of 1940.
Any certificate, investment contract, or other security that represents an obligation on the part of the issuer to pay a stated sum in return for payment installments is refered to as a.

Face amount certificate

According to the ICA of 1940, In repect to an investment company,investment adviser or principal underwriter. All affiliate persons, their family members and business contacts within the past 2 years are considered ______ persons.

Interested

Any certificate, investment contract, or other security providing for a series of periodic payments by the holder and representing an individual interest is called a.

Periodic Payment Plan Certificate.

Any security under the terms of which the holder,upon presentation to the issuer, is entitled to receive his proportionate share of the issuer's current net assets.

Redeemable Security

The difference between the price of a security to the public and the net portion of the proceeds from its sale less deductions for various fees and expenses.

Sales Load

What rule is defined by "Payment of asset-based sales loads by registered open-end management investment companies."

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